ASIC asks Suncorp to refund customers $23m

Suncorp Group
will need to improve its compliance systems following an independent review requested by the corporate watchdog, and refund $23 million to some customers for reported breaches.

Brisbane-based Suncorp has agreed to execute a “number of enhancements" to existing systems across the group’s life and general insurance businesses.

The Australian Securities and Investments Commission sought an independent review of Suncorp’s practices after the regulator’s own examination uncovered a “significant number of breaches" reported by the group.

“In the period from June 2010 to date, over 849,000 customers have been affected by reported breaches, requiring refunds of approximately $23 million," ASIC said in a statement. Suncorp in turn had committed to improving its processes reporting breaches and incidents, monitoring and supervising representatives, administering policy discounts in general insurance products, and training.

Among Suncorp’s breaches is the company’s failure to provide promoted discounts to eligible multi-policy general insurance customers. Some senior card holders were also affected on their home and contents policies.

The company would have to report to ASIC regularly this year as the changes take effect.

“Suncorp acted appropriately in reporting the breaches to ASIC as it identified them, and in acting to remediate affected customers," ASIC deputy chair Peter Kell said in a statement. The insurer is completing the refund process.